Donating rental property to charity provides a benefit to you as well as your partner charity. Though, it’s important to consider a few steps before jumping right in.

First, it is important to talk to your receiving charity first. Many charities cannot take on the cost and maintenance of a rental property. While the donated rental property is free, the cost of maintaining property until used or sold can be significant.

Second, speak with a financial advisor to ensure that you are properly documenting the donation, as well as taking advantage of appropriate tax incentives to justify the donation. Like anything, donating the rental property to a charity needs to be done correctly in the eyes of the IRS to be valid.

Third, if possible take care of additional costs such as back taxes, utilities, and unpaid mortgage. While there are charities that will take a donated rental property with an unpaid mortgage, there are not many.

Donating a rental property to charity is a great way to give back to the community as well as benefit from tax incentives. Curious about donating your rental property to a Chicago non-profit? Contact your financial advisor to learn about existing opportunities.